Car Insurance Is Essential For You. A Talk. The most awaited call is finally upon you. “Tring Tring,” your landline rings and takes you to a ride of joy when you figure out it’s no one but your car dealer, informing you your brand new car is all set to electrify roads. And you felt like your feet barely touched the ground.
The moment you saw your all-glistened new auto vehicle parked right at the front of your house, your heart leaped up for joy. Now suddenly, you went on a neuron flight and started thinking of ways to protect your car. The possessive soul in you came up with so many ideas to protect your vehicle from damages, warning people with phrases like, ‘Touch it, and you die.’
It’s understandable why you want your car to be all good and damage-free for as long as possible, because of your sheer love for cars and of course, it’s of your hard-earned money.
Motorheads spend too much time researching the latest model, the snazziest of safety car features, the jazziest colors, and almost dedicate their lives to their cars.
Come on, let’s be frank, we all are like this, no matter how much we try to hide this, but for car lovers, nothing can come between our cars and us, let alone our friends.
But, many of us ignore the nitty-gritty details of car insurance and what it entails.
What is Car Insurance, and Where does it Come From?
Car insurance is an agreement between a car owner and the insurance company that offers you protection against financial losses. These losses usually are incurred from accident and theft cases. In exchange for the service of covering your losses, the company asks you to pay the premium, as written in your policy paper.
The concept of insurance dates back to 1751, given by Benjamin Franklin, who is then known as one of the forefathers of insurance in the US. His great inventions also include lightning rod, bifocals, and other useful things. His company, Philadelphia Contributionship, was the first company in the colonies to provide fire insurance.
However, car insurance was a little before Ben Franklin’s time, but he recommended loss coverage that included life insurance and crops, coverage for orphans, and widows too. Irrespective of what kind of policy he proposed, all the policies ultimately had the same purpose: to ease the monetary burdens that can occur in times of disasters.
Wondering why is it essential in the first place?
According to NHTSA, over six million car accidents happen each year in the United States.
Have you imagined what could be the aftermath of having to encounter a severe car accident that caused your vehicle irreparable damages?
Imagine having to live a scenario:
“You are rounding the corner; you bumped straight into another car, which was on the wrong side of the road. BANG!!!!!”
The scene is enough to make you scared to death both for your life and your car. However, if your financial decisions are on point, it could help you save the latter.
Yes, with the financial decision I meant, getting your car insured smartly.
So one thing that all of us should think about before you take the plunge into car buying is the insurance. I have seen many people considering auto insurance as wasting money, just another way to sign a check and never reap the benefits.
However, this is an utter misconception. Car insurance saves thousands of car owners from incurring hefty financial losses that could result from car damage.
Here is why getting your car insured is very important:
· It’s The Law
The most common type of auto insurance is liability car insurance as it covers the minimum amount of loss and is legally required in all the states of the US. If you cause any damage to the other party, this insurance will have you covered.
Moreover, there are other types of car insurance with the provision of bigger loss coverage. Such policies cover your passengers, other party’s and vehicle’s damage expenses.
Since liability auto insurance is mandatory across the US, if you are found without it, you could be subjected to arrest, fines, and suspension of your driving license.
So, getting caught without car insurance can lead to costly and time-consuming penalties and will make your driving records questionable. This could affect your insurance premiums down the road.
· Peace of Mind and Financial Security
Apart from the fact that one basic car insurance is mandatory, the feeling of having that financial protection is exceptionally comforting for many. If you experience a car damaging accident with one of your hippo prestige cars, chances are you will have to bear the expense they incur. This is why you should invest in comprehensive car insurance, so you never have to bear the financial burden of other party’s injury or car damage.
· Car Insurance Extras
Auto insurance plans offer a wide range of different options for coverage. These ranges can prove to be absolutely vital too. Additional coverage includes Rental Insurance, Gap Insurance, Roadside Assistance, Minor Violation Forgiveness, Custom Equipment, and OEM Endorsement.
Each of these car insurance types has its own place in various policy plans. It all boils down to the car owner and what his expectations are from the car insurance policy. If you reduce your insurance cost by reducing the coverage, you may suffer from substantial financial loss in times of an accident. Furthermore, it could worsen the case if you are the one who caused the accident.
The Bottom Line
Having to be secure with ample and reliable insurance coverage is an absolute essential for car owners. After all, you don’t have to get into the hassle of experiencing money issues when you are already in the trauma of an almost fatal accident.
So, act like a smart buyer and a responsible citizen. Do your research, compare the costs of different quotes offered by car insurance companies, and make a package that is a good fit for your coverage needs and your budget.